from J. Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
The legislature has adjourned for summer recess and will return in August for the final one-month stretch before completing the first year of the 2013-14 legislative session. The final weeks of the legislative year will primarily focus on the Appropriations Committee(s) and floor sessions where surviving legislation will be sent to the Governor for final consideration.
A major outstanding issue remaining is CEQA reform. The Senate leader has stated comprehensive CEQA reform is a high priority and the various factions have designated lead people to negotiate a bill. At this point it is not apparent if legislation will move prior to the end of the legislative year or if it will be a two-year bill.
Governor Brown has appointed Brian Kelly as Secretary of the Transportation Agency. The Transportation Agency will align all of the state’s transportation entities. Kelly, the new Secretary of the Transportation Agency, has served as acting secretary at the California Business, Transportation and Housing Agency since 2012, where he was undersecretary in 2012. He was executive staff director for Senate President pro Tempore Darrell Steinberg from 2008 to 2012 and executive principal consultant for Senate President pro Tempore Don Perata from 2004 to 2008. Prior to the realignment, unrelated departments – like Caltrans, the Department of Real Estate and the Department of Financial Institutions – were housed together, while related programs were scattered throughout different agencies. In many cases, departments and programs were duplicative. The Governor’s plan changes the reporting relationships of dozens of entities to improve coordination and efficiency and make government more responsive.
The implementation of the health benefits exchange – Covered California – is one of the highest profile issues this year in California. State Exchanges are to be operational by October 1, 2013. Despite the Obama administration delaying for a year the requirement that large employers offer health insurance to workers, California’s Exchange says they will be operational on October 1.
Politically, a special run-off election will occur on July 23 and will decide a heated runoff between Democrat Leticia Perez, a Kern County supervisor, and Republican rancher Andy Vidak, who came within 114 votes of winning the seat outright in May. The special lection will fill the seat of Michael Rubio who resigned from the Senate to take a public affairs job with Chevron. The outcome of the election is key to both political parties and could determine the Democrat’s 2/3’rds voting majority in the future. This year will see a handful of other special elections because of the election of two legislators to the LA City Council.
Listed below are some of the key bills to be focused on for the remained of the legislative year:
AB 10 - Increases the state's minimum wage in three separate increments over the next three years ending at $9.25 in 2016. Recent amendments removed automatic adjustments to wages based upon the California Consumer Price Index after 2016. The bill is pending in the Senate Appropriations Committee. This is legislation the Governor will decide.
SB 7 - Prohibits a charter city from receiving or using state funding for a construction project if the city has a charter provision or ordinance that authorizes a contractor not to comply with prevailing wage requirements on any public works contract. SB 7 was passed by the Assembly Local Government Committee and will be considered by the Assembly Labor Committee in August.
AB 44 - Requires a prime contractor, when submitting bids for any state or local government public works project, to list the contractor license number for each subcontractor to perform work on that project. This requirement will apply to bids received on and after July 1, 2014. Recent amendments will provide for an allowance that bids cannot be protested for inadvertent errors when listing license numbers and a 24-hour period to make any corrections. The bill is pending in the Senate Appropriations Committee.
AB 302 - Provides a statutory definition for a "de minimis" public subsidy that does not trigger the requirements of prevailing wage law. The bill defines "de minimis" to mean a public subsidy that is both less than $10,000 and less than 1 percent of the total project cost. The bill does not apply to a project that was advertised for bid, or a contract that was awarded, before January 1, 2014. The bill is pending in the Senate Appropriations Committee.
AB 1140 - Provides that changes made to prevailing wage rates apply on their effective date to any contract that is awarded or for which notice to bidders is published on or after January 1, 2014. The bill is pending in the Senate Appropriations Committee.
AB 1336 - Designed to combat those contractors who fail to pay construction workers all wages due and at prevailing wage rates, the bill could negatively impact contactors with expanded liability for fines and penalties through Department of Industrial Relations and/or court system. Amendments seemly agreed to provide relief for general contactors from fines and penalties for nonpayment of proper wages by subcontractors. Most contractor organizations remain opposed to bill because of the expansion from 180 days to 18 months for an employee to file a claim.
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J. Kevin Pedrotti can be reached at Clear Advocacy, LLC. Kellison | Main | Pedrotti. 925 L Street, Suite 1450. Sacramento, CA 95814. 916|479|7400 - o. 916|708|5293 – m. www.clearadvocacy.com